Guidelines for Investment Declaration

F. Y. 2014-2015

November, 2014

Tandem Integrated Business Solutions Private Limited

www.tibs.in
 Table of Contents

1 Submit Final Declaration in Tanqaa ...................................................... 3

2 Print the Declaration..............................................................................5

3 Guidelines for Investment Proof Submission ......................................... 7

4 Pedning Declaration Investment Proof Submission ............................. 16

1 Submit Final Declaration in Tanqaa
Login to Tanqaa and visit the tax declaration screen.

Click to open a new

declaration screen

On clicking the icon, you can view the tax declaration screen at the bottom. If you had submitted any declaration for the
year 2014-2015 earlier, you would see the last submitted declaration being displayed. You can edit the last submitted
declaration and submit it as final declaration. In case you are submitting the declaration for the first time in the year, you
will see a blank screen in which you can make entries.

Guidelines for tax related declarations 3

Please note that this will be your final declaration for the year. On the screen, you will be able to see “Final” for the
Declaration Type field by way of a disabled dropdown (please see the above screenshot). In case you see “Initial” in the
disabled dropdown instead of “Final,” please report it to us by sending an email to incometaxqueries@tibs.in.

For your declaration to take effect, the Declaration Type field should display “Final” instead of “Initial.”

Fill in tax declaration information on the screen. Please click on the icon on top right of the screen for help. After you
complete entering the declaration, scroll down to the bottom of the screen and click the “Submit” button.

As soon as you submit the declaration, you will see an entry bearing the time stamp in the “Comments History” area. If
you do not see the date and time of submission in the “Comments History” area, you should assume that your declaration
has not been recorded by Tanqaa and you have to submit your declaration once again.

Guidelines for tax related declarations 4

 Date and time stamp
of the declaration

Once you have submitted your declaration, you will not be able to modify it. In case you made a mistake while submitting
the declaration, please send a mail to incometaxqueries@tibs.in, specifying your company name and employee ID, asking
us to reverse the declaration so that you can submit the correct declaration.

2 Print the Declaration

After you submit the declaration, click the “Export to PDF” button at the bottom of the screen. You would see the
declaration sheet opening in a PDF file.

Click to Generate the

Declaration in ‘.pdf’

In the PDF file, you should see “Final Declaration” in the title. If you see “Initial Declaration” please re-submit your
Guidelines for tax related declarations 5
declaration and take a print out of the declaration.

Print the PDF file, and affix your signature on the last page of the declaration sheet. Declaration sheet without employee
signature will not be considered for exemption calculation.

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Please go through the declaration sheet to check if all your entries have been accurately presented. Submit the control
sheet stapled along with the receipts of your investments to your HR/Finance department. Please note that all house rent,
home loan, and investments stated in the declaration should have a corresponding receipt. If receipts are not furnished,
your declaration may be rejected, and consequently your tax liability may go up.

3 Guidelines for Investment Proof Submission

3.1 Income and Tax Details from Previous Employment (Applicable for employees who joined
after 1st April 2014)
Proof to be submitted
Declaration in Form 12B (http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form12B.pdf) along
with Form 16 or a signed tax computation sheet from the previous employer.
Guidelines
Income after Sec 10 exemption and deductions such as Profession Tax, Provident Fund, and Income tax deducted will be
taken into account for tax calculation.

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3.2 Bills for Medical Allowance (if applicable in your pay structure):
Proof to be submitted
Original Medical bills of treatment for self, spouse, children, and parents.

The details of bills to be updated in Tanqaa under the tab Bill Details -> Medical Allowance.
Guidelines
1. The bill amount updated in the declaration sheet should match with the amount presented in the bill.
2. Bills should pertain to current tax year only (Apr 2014 – Mar 2015) and to the period of employment with the current
organization.
3. Bills pertaining to toiletries and cosmetics will not be considered for medical exemption calculation.

Note for Pending Bills:

In case there are any pending bills to be submitted after the proof submission cut-off date, please declare
the same in Tanqaa by adding a additional row with bill number as ‘Pending’ and declare the pending
amount in Pending declaration template as given in the last page of this document.

3.3 House Rent Allowance Exemption (Under Section 10)

Proof to be submitted
Rent receipts for the period of rented accommodation specified in your declaration.
Guidelines
1. Please submit original receipts presenting the address of the residence. Rent agreement alone is not sufficient.
2. The receipt should clearly specify the amount of rent, period of stay in the current tax year, and carry the signature of
the owner of the property.
3. Rent receipt pertaining to periods outside of the current employment period will not be considered for exemption
calculation.

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4. Further if annual rent paid by the employee exceeds Rs. 1,00,000 (One Lakh) per annum, as per
circular no 08/2013 dated 10th October, 2013, it is mandatory for the employee to report PAN of the
landlord to the employer. In case the landlord does not have a PAN, a declaration attached separately
(PAN-Card-declaration-from-Landlord.pdf) to this effect from the landlord along with the name and
address of the landlord should be submitted by the employee.

3.4 Housing loan – Loss on House Property (Under Section 24)

Proof to be submitted
Provisional certificate issued by the housing finance company/bank, clearly indicating the address of the property for
which the loan has been taken. Form12C also to be submitted in case of let out property.
Guidelines
1. Only the interest paid from Apr 2014 to Mar 2015 will be considered for exemption calculation.
2. Pre-EMI interest (EMI paid before occupation of the house), if any, is deductible in 5 equal installments starting from
the year when the construction is completed or property is acquired. The relevant proof and the calculations have to be
attached.
3. In case of jointly availed loan, the employee should declare only the amount paid by him/her in the
declaration. In case you wish to claim the 100% tax exemption for the loan repayment, please submit a
letter/declaration attached separately (Home Loan Co-borrower Declaration.pdf).
4. If the own premise is left vacant, a notional rental income – calculated as per guidelines issued by the income tax
department -- has to be declared.
5. The employee should submit a declaration in case he/she is availing both HRA exemption and
Housing Loan Interest benefit stating that the property is owned by him/her is not let out and he
derives no income from the property.
6. Loan taken for land is not exempted as per Income Tax rules.
7. Form12C attached separately – to be submitted for let out property.

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3.5 Life Insurance Premium (Under Section 80C)
Proof to be submitted
Copies of the insurance policy with details of the insured persons and the receipt of premium paid for the year.
Guidelines
1. The insurance policy should be from a company approved by the IRDA.
2. The premium amount should pertain to Apr 2014 – Mar 2015.
3. The insurance policy can be for the employee, spouse and children of the employee.
4. Late fee payment, if any, will not be considered for tax exemption.

Note:
• If the policy issue date is 01-April-2012 or later, then the deduction benefit on account of the insurance
premium shall be the actual premium paid or 10% of the sum assured amount, whichever is lower. For
example, if the sum assured amount is Rs 1 lakh and the annual premium amount is Rs 30,000, then the
deduction is restricted to Rs 10,000 (or 10% of the sum assured amount).

• If the policy issue date is before 01-April-2012, then the deduction benefit on account of the insurance premium
shall be the actual premium paid or 20% of the sum assured amount, whichever is lower.

3.6 Deposit in Public Provident Fund (Under Section 80C)

Proof to be submitted
Copy of stamped challan and PPF passbook.
Guidelines
The PPF deposit can be in the name of the employee, spouse and children of the employee.

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3.7 Deposit in National Savings Certificate (Under Section 80C)
Proof to be submitted
Copy of the savings certificate and details of interest calculation.
Guidelines
The NSC interest will be taxed as “Other Income.”

3.8 Deposit in Scheduled Bank (Under Section 80C)

Proof to be submitted
Copy of deposit certificate/receipt indicating ‘Bank Term Deposit Scheme, 2006’.
Guidelines
The term deposit should be for a minimum period of 5 years to be eligible for tax exemption.
3.9 Investment in ULIP, ELSS, Infrastructure Bonds, and National Savings Certificate (Under
Section 80C)
Proof to be submitted
Copy of receipt, bond, certificate, and fund statement.
Guidelines
The investment should pertain to Apr 2014 – Mar 2015.

3.10 Children’s Education Fee (Under Section 80C)

Proof to be submitted
Fee receipt issued by the education institution.
Guidelines
1. Tuition Fee alone will be considered for tax exemption; donations and other fee will not be considered.
2. Receipts should pertain to the period Apr 2014 – Mar 2015.

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3.11 Housing Loan Principal Repayment, Registration Fee, and Stamp Duty (Under Section 80C)
Proof to be submitted
Provisional certificate issued by the housing finance company/bank, copy of the sale deed and receipt of stamp duty paid.
Guidelines
Certificate, sale deed, and stamp duty should pertain to Apr 2014 – Mar 2015.

3.12 Pension Policy (Under Section 80CCC)

Proof to be submitted
Copies of the insurance policy with details of the insured persons and the receipt of premium paid for the year.
Guidelines
1. The insurance policy should be from a company approved by the IRDA.
2. The premium amount should pertain to Apr 2014 – Mar 2015.
3. The insurance policy can be for the employee, spouse and children of the employee.
4. Late fee payment, if any, will not be considered for exemption.

3.13 Medical Insurance (Under Section 80D)

Proof to be submitted
Copies of the insurance policy with details of the insured persons and the receipt of premium paid for the year
Guidelines
1. The premium amount should pertain to Apr 2014 – Mar 2015.
2. For employee, spouse & children - Rs 15,000.
3. In case parents below 60 years of age are covered - Rs 15,000. In addition to above.

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4. In case of parents above 60 years (senior citizens) of age are covered - Rs 5,000 in addition to point no. 2 and 3 above.
5. Apart from the above insurance premiums, preventive health check-up expense up to Rs.5,000/- shall be allowed for
tax exemption. However, this amount shall not exceed overall limit applicable for exemptions u/s 80D.

3.14 Maintenance Expenditure for a Disabled Dependant (Under Section 80DD)

Proof to be submitted
Copy of Form 10-IA (http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10IA.pdf) issued by
a competent medical authority with a self-declaration certifying amount spent on treatment.
Guidelines
Where the condition of disability requires reassessment, a fresh certificate is to be obtained to continue claiming the
deduction.

3.15 Expenses Incurred for Treatment of Specified Diseases (Under Section 80DDB)
Proof to be submitted
Copy of Form 10-I (http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10I.pdf) issued by a
competent medical authority with a self-declaration certifying amount spent on treatment.
Guidelines
Where the condition of disability requires reassessment, a fresh certificate is to be obtained to continue claiming the
deduction.

3.16 Interest on Education Loan for Higher Education (Under Section 80E)
Proof to be submitted
Letter / certificate from the bank / financial institution specifying that the loan is an educational loan and the amount of
interest paid on the loan is for the current year (Apr 2014 – Mar 2015)

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Guidelines
1. The loan should have been availed by the employee/ employee’s children for pursuing higher education.
2. Only the interest paid for the first 8 years of repayment will be considered.
3. There is no limit on the amount of interest that can be considered for exemption.
4. Interest paid in the current year (Apr 2014 – Mar 2015) alone will be considered for exemption.

3.17 Self-disability Claim (Under Section 80U)

Proof to be submitted
Copy of Form 10-IA (http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10IA.pdf) issued by
a competent medical authority.
Guidelines
Where the condition of disability requires reassessment, a fresh certificate is to be obtained to continue claiming the
deduction.

3.18 Donations under Section 80G

Proof to be submitted
Photocopy of the receipt issued by the charitable trust/ institution.
Guidelines
1. Donations made to funds (Prime Minister Relief Fund) which are notified by the income tax department under Section
80G.
2. Donations paid to the charitable trusts cannot be authorised by the employer. You may claim exemption u/s 80G while
filing your income tax return.
3. Investments in certain avenues are eligible for 100% rebate while investments in other avenues are eligible for rebate
only to the extent of 50%.

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3.19 Declaration in Case Proof of Investment is not submitted (Only
for existing investments and not for new ones)
If any of your scheduled premium(s)/investment(s) falls due after the cut-off date
specified by your organization, please submit a declaration as per the below template.
Employee Declaration
Given below are the details of scheduled premium(s)/investment(s) that are due for
payment after the declaration submission cut-off date specified by my organization, but
are payable before the end of financial year 2014-15. Please consider scheduled
premium(s)/investment(s) for the tax benefit in the current year 2014-15.
Investment Type Reference number for Due Date
(Insurance, Mutual the investment (Policy (Should be
S .No. Amount in Rs.
Fund, Pending number, Folio number, before 31st Mar
Bills, etc.) etc.) 2015)
1

10

1. I hereby declare that the information provided above is correct and will be solely responsible for
any situation arising out of non-payment of the above before 31st Mar 2015.
2. I hereby declare that the above mentioned scheduled premium(s)/investment(s) pertain to
existing investments for which last paid receipt/proofs have been submitted and are not new
investments.

Employee ID: Employee Name:

Signature: Date:

Guidelines for tax related declarations

Income Tax Slab Rates for Financial Year 2014-2015.
Taxable Income Rate %

Up to Rs. 2,50,000 Nil

Rs. 2,50,001 to Rs. 5,00,000 10

Rs. 5,00,001 to Rs. 10,00,000 20

Above Rs. 10, 00, 000 30

Surcharge for Taxable Income above Rs. 1 Crore – 10% on Income Tax.

Education Cess 2% and Higher Education Cess at 1 % applicable on Income Tax and
Surcharge(If any).

Amendments as per Budget for AY 2015-2016 (FY 2014-2015)

Income exemption limit increased from Rs. 2,00,000 to Rs 2,50,000.

Exemption for Investments under Sec 80C increased from Rs. 1,00,000 to
Rs. 1,50,000.

Exemption for Interest on Housing Loan for Self Occupied property increased
from Rs. 1,50,000 to Rs. 2,00,000

Exemption under Sec 80EE not extended beyond March 31, 2014.

#Income derived after all exemption under various sections (HRA, 80C, Home Loan, etc.) of

income tax act.

Guidelines for tax related declarations